views

DTZ says trading is in line with expectations

Commercial property agent DTZ yesterday told shareholders it was trading &ldquo;in line with expectations&rdquo;, two months after reporting an annual pre-tax loss of &pound;35.1m.<br /><br />Chairman Tim Melville-Ross yesterday said that the group&rsquo;s &pound;50m cost cutting programme had accelerating and &ldquo;savings were well advanced&rdquo;.<br /><br />Melville-Ross said: &ldquo;The global economic crisis and resulting unrelenting pressure on global real estate markets inevitably impacted the group significantly.&rdquo;<br /><br />Including writedowns on its 50 per cent stake sale in DTZ Rockwood in the US, the group reported a loss of &pound;79.7m. The property slump and 18 per cent drop in revenues forced the group to axe the 6.5p a share dividend it paid last year. <br /><br />Since the property market collapsed DTZ has embarked on a radical rescue plan, including appointing former Barclays chief operating officer Paul Idzik as chief executive.<br /><br />Under Idzik the group has slashed costs, cutting its workforce by 1,504 to 5,575. <br /><br />In January, DTZ raised &pound;48.7m from shareholders, backed by its largest shareholder SGP, to shore up its battered balance sheet. <br />